Quick Read
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Amazon returned 532% over the last decade, yet Moritz warns most investors sell during all-time highs, destroying compounding gains.
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Charlie Munger named Moritz as the only investor worth interviewing, crediting temperament over intellect for his ability to hold positions.
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Amazon’s AWS backlog hit $496 billion with 37% revenue growth, rewarding patient holders who stayed through $200 billion in capex spending.
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Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Amazon didn’t make the cut. Enter your email to see the names that beat AMZN. The report is free. Enter your email and see if any of your stocks made the cut.
Sir Michael Moritz spent about 38 years at Sequoia Capital, where he backed companies like Google, YouTube, PayPal and Stripe. He has a simple explanation for why most investors fall short. On a new episode of Richer, Wiser, Happier from The Investor’s Podcast Network, Michael Moritz said: “Most investors are congenitally incapable of doing nothing. They just have to do something.”
In his view, the urge to act is the problem. Investors trim or sell for reasons that have little to do with a company’s future prospects, such as a scary headline, a round-number price or a gain that feels too big to leave on the table. Each trade feels productive in the moment. Over decades, all that activity cuts short the compounding that actually builds wealth.
Why Charlie Munger Singled Out Moritz’s Temperament
The host said that when he asked Charlie Munger which investors were worth interviewing, Munger named one person: Moritz. Munger gave the credit to temperament over intellect. In the host’s account, Munger said Moritz “was not the leading intellectual, but temperamentally he was able to hang on to everything he did better than all his brighter partners.” Moritz said he was “incredibly flattered” that Munger would remember him that way.
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Amazon Question That Stops Investors Cold
The core of Moritz’s argument is Amazon (NASDAQ:AMZN). Michael Moritz asked: “In the 30 years or so that Amazon has traded as a public company, how many days has that stock traded at an all-time high? That question always stops people in their tracks.”
